Which of the Following Is an Advantage to the Franchisor

question 87

Multiple Choice

Which of the following is an advantage to the franchisor in a franchise agreement?

• A) Opportunity to start a business with limited capital
• B) Access to local advertising materials
• C) Fast and selective distribution of products
• D) Chance to participate in national advertising
• E) Chance to minimize costs through cooperative buying

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Definitions:

Quick-Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.

Common Size Income Statements

A financial statement in which all line items are expressed as a percentage of revenue, allowing for easy comparison across companies and time periods.

Revenues

The aggregate revenue from selling goods or providing services which constitute the core business activities.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.